S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — S.D. Standard Drilling — Pareto Oil & Offshore Conference 2019
21 slides from S.d. Standard Etc's conference presentation, Sep 12, 2019
Slide 1: S.D. Standard Drilling Plc. Company Presentation
S.D. Standard Drilling Plc. Company Presentation 12 September 2019
Slide 2: Important Information
Important Information This presentation may contain statements about future events and expectations that are forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believes”, “expects”, “anticipates”, “intends”, “es
Slide 3: Company overview
Company overview Founded in 2010 - Headquarter in Limassol, Cyprus Listed on Oslo Stock Exchange (ticker: “SDSD”) Cash balance end of July 19 of ~USD 29m (1) Market cap of USD ~65m (2) Currently a total fleet consisting of 15x partly (+ 1 vessel on BB) or wholly owned Platform Supply Vesse
Slide 4: Asset Play - well positioned for recovery and opportunities
Asset Play - well positioned for recovery and opportunities Acquisitions at all-time low Lowest break-even Access to opportunities Modern fleet of large PSV’s Solid cash position No debt 4
Slide 5: Highlights- Asset transactions
Highlights- Asset transactions 2010 – ENTERED THE JACK-UP SEGMENT: 2010 – 2011: Ordered seven (7) jack-up rigs at Keppel Fels for USD 1 307m 2011 – 2013: Sold seven (7) jack-up rigs for USD 1 528m 2016 – ENTERED THE PSV SEGMENT: PURCHASE OF VESSELS: 2017 – 2019: Purchase of six (6) large size
Slide 6: Competitive advantage in the current PSV market
Competitive advantage in the current PSV market Modern fleet of large 1 No debt 2 Low overhead costs 3 vessels 4 Independent position Low-cost and flexible Modern fleet and attractive No interest cost Good cash position structure tech. spec Outsourced operational No amortization High vessel utilizat
Slide 7: Large-size PSV vessels – 100% owned
Large-size PSV vessels – 100% owned Standard vessels (6x) Standard Viking Standard Supplier Standard Princess Standard Supporter Standard Provider Standard Olympus (2008) (2007) (2008) (2009) (2010) (2014) Purchase price: Purchase price: Purchase price: Purchase price: Purchase price: Purchase price
Slide 8: Mid-size PSV vessels – Partly owned
Mid-size PSV vessels – Partly owned Northern Supply vessels (8x) – 25.5% owned 2x vessels 2x vessels 2x vessels 2x vessels Purchase price: Purchase price: Purchase price: Purchase price: ~USD 2.5m(1) ~USD 2.5m(1) ~USD 5.4m(1) ~USD 5.9m(1) Ownership: 25.5% Ownership: 25.5% Ownership: 25.5% Ownership:
Slide 9: Fleet utilization
Fleet utilization Combined fleet utilization 1Q17 to Aug-19 100% 97% 90% 89% 80% 70% 60% Utilization (%) 50% 40% 30% 20% 10% 0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Jul/Aug-19 Large-size Mid-size Standard vessels Northern Supply (100% owned) vessels Note: (25.5% owned) - Vessels unavail
Slide 10: Contract coverage
Contract coverage Standard vessels (100% owned) 2019 2020 Vessel Built Client Country Q2 3Q 4Q 1Q 2Q 3Q Large-size Vessels Standard Viking 2007 Peterson UK Standard Princess 2008 Allseas UK Standard Supplier 2007 Allseas UK Standard Provider 2010 Equinor UK Standard Supporter 2009 Team (Chevron) UK
Slide 11: Lack of modern large size vessels available in the market
Lack of modern large size vessels available in the market Breakdown of laid up North Sea PSV fleet (2Q19) (1) Zero easily reactivated vessels remain in the stacked PSV fleet relevant for the North Sea, based on the specified factors above Source: Clarksons Research Services Limited 11
Slide 12: Signs of recovery- more contracted rigs should give increased demand for PSVs
Signs of recovery- more contracted rigs should give increased demand for PSVs North Sea rigs on contract | Jan-15 to April-20 Source: Clarksons Research Services Limited 12
Slide 13: Increased rates – Large size PSV’s
Increased rates – Large size PSV’s Increased tender activity Large-size PSV term rates (900m2) Large-size PSV spot rates (900m2) 55 55 Term rates have increased by ~100% since Mar-17 Spot rates have increased by ~42% since Mar-17 50 50 45 45 40 40 35 +100% 35 +42% USD ('000) USD ('000) 30 30 25 25
Slide 14: Increased rates – Medium size PSV’s
Increased rates –Medium size PSV’s Increased tender activity Mid-size PSV term rates (900m2) Mid-size PSV spot rates (500-800m2) 40 40 Term rates have increased by ~52% since Mar-17 Spot rates have increased by ~51% since Mar-17 35 35 30 30 +52% +51% 25 25 USD ('000) USD ('000) 20 20 15 Last 10yr
Slide 15: Signs of recovery- EBITDA moving in the right direction
Signs of recovery- EBITDA moving in the right direction (1) Standard vessels (100% owned) and Northern Supply vessels (25.5% owned), pro-rata Standard vessels Northern Supply vessels, pro-rata (100% owned) (25.5% owned) Total 3500 3 170 3000 2 818 2500 Adj. EBITDA(1) (USD'000) 2000 1500 1000 830 352
Slide 16: Summary - well positioned for recovery and opportunities
Summary - well positioned for recovery and opportunities Lowest break-even Acquisitions at all-time low Best cost position with considerably lower Average discount of ~75% to newbuild overhead than peers and all equity parity at NOK 1.06 per share(1) balance sheet securing lowest break-even in the i
Slide 17: APPENDIX
APPENDIX III. Financial information 17
Slide 18: Income statement
Income statement S.D. Standard Drilling – Income statement for 2Q19 Three Months Ended Six Months Ended 2019 2018 2019 2018 (Amounts in USD 000) Q2 Q2 Q2 Q2 Unaudited Unaudited Income Changes in fair value on financial assets at fair value through profit or loss 4 674 (2 250) 7 622 (2 862) Changes i
Slide 19: Balance sheet
Balance sheet S.D. Standard Drilling – Balance sheet for 2Q19 (Amounts in USD 000) 30.06.2019 31.12.2018 ASSETS Unaudited Audited Equipment and machinery 2 1 Financial assets at fair value through profit or loss 112 206 94 966 Total non-current assets 112 208 94 967 Trade and other receivables 35 25
Slide 20: Cash flow statement
Cash flow statement S.D. Standard Drilling – Cash flow statement for 2Q19 Six Months Ended 2019 2018 Q2 Q2 (Amounts in USD 000) Unaudited Unaudited CASH FLOWS FROM OPERATING ACTIVITIES Profit/(Loss) for the period before income tax 7 547 (2 558) Unrealised exchange (gain)/loss (109) 60 Payments to f
Slide 21: Gd) stanvaro DRILLING
Gd) stanvaro DRILLING
S.D. Standard Drilling — Pareto Oil & Offshore Conference 2019 on 6ix